May 26, 2025
Business Secretary Jonathan Reynolds called the agreement the most favourable deal India has signed to date
The FTA is expected to significantly increase UK exports, especially in whisky, gin, cosmetics, medical devices, and lamb
UK SMEs are likely to benefit from smoother customs and digital trade systems that reduce entry barriers into the Indian market
The Board of Trade, which includes business leaders like Allison Kirkby and Michelle Ovens, will help firms capitalise on these opportunities.
The UK’s new Free Trade Agreement (FTA) with India will make it “quicker, cheaper and easier” for British companies to trade with the country, according to the government, which formally announced the development.
The deal, finalised during Commerce and Industry Minister Piyush Goyal’s visit to London earlier this month, has been described by Business and Trade Secretary Jonathan Reynolds as the most beneficial agreement India has entered into so far. He made the remarks at the inaugural meeting of a newly revitalised Board of Trade, charged with expanding British exports and supporting small businesses in tapping into international markets.
Reynolds emphasised that the Board is not merely advisory but a “dynamic force” committed to helping UK businesses of all sizes access global opportunities through the country’s recent trade deals, including those with India and the United States. He added that the India agreement would offer a major boost to sectors such as steel and automotive, where the US deal has already reduced tariffs and protected hundreds of thousands of jobs.
The Department for Business and Trade (DBT) highlighted that the FTA with India will especially benefit exports of British whisky, gin, cosmetics, medical devices, advanced machinery, and lamb. In the long run, it is estimated to add £25.5 billion annually to bilateral trade.
Officials noted that improved customs systems and the promotion of digital trade processes will be critical, particularly for small and medium enterprises (SMEs), helping them enter the Indian market more effectively than before.
Calling it a landmark agreement, Bill Winters, Group Chief Executive of Standard Chartered and Co-Chair of the UK-India Financial Partnership, said the FTA would expand market access and drive innovation along the UK-India economic corridor.
Karen Betts, Chief Executive of the Food and Drink Federation, echoed this sentiment, noting that with nearly £300 million worth of British food and drink already exported to India in 2024, the deal presents a major opportunity for growth. She added that the agreement would also help UK manufacturers secure Indian ingredients, strengthening supply chains and boosting sector competitiveness.
Wednesday’s Board of Trade meeting is part of a broader initiative aimed at fostering high-growth SMEs across the UK. The board includes prominent figures such as entrepreneur Mike Soutar, BT Group CEO Allison Kirkby, and Small Business Britain founder Michelle Ovens, who will champion trade expansion efforts.
Ovens pointed out that nearly all businesses in the UK are small businesses and that the recent flurry of trade agreements has given the economy fresh momentum and ambition.
The board is expected to play a key role in shaping the government’s upcoming ‘Trade Strategy’ and ‘Small Business Strategy’, both of which aim to drive economic growth and raise living standards nationwide.
The announcement closely follows a new trade agreement with the United States, which the UK government says will protect jobs in key sectors such as automotive, steel, aluminium, pharmaceuticals, and aerospace industries, employing over 320,000 people across the country.
Source: Economic Times